I am a 50 year old NRI and interested in pure term policy of ₹3 Crore with additional accidental death benefit cover of ₹3 Crore. Can you please suggest which of the Indian companies offer the policies for NRIs and which one will be best suited for me in terms of service and claims payout ratio?
--Hari Achariya
Most life insurance companies offer term Insurance cover for NRIs. However, you should evaluate if you should buy insurance cover in India. Here are a few things to consider:
Cost : Will the policy be cheaper in your country of residence?
Tax laws: It is advisable to take into consideration, the tax laws in the country of residence before buying a policy in India.
You should check if additional riders included within the premium of a basic plan or with an additional cost. It is advisable to be present in India at the time of purchase of the policy to avoid additional cost of medical examination and sending it to the insurance company. If you purchase the policy while you are in India, you would not have to bear this cost as it would generally be inbuilt in the cost of your policy.
Here are the annual premiums charged by some insurance companies for a ₹3 Crore cover for a 50-year-old non-smoker up to age 60, with their claim settlement ratio in brackets:
Max Life - /- 54,960 (claim settlement ratio for 2014-15 = 96.03%)
Birla Sun Life - /-48,262 (claim settlement ratio for 2014-15 = 95.3%)
HDFC Life - 54,025/- (claim settlement ratio for 2014-15 = 90.5%)
This article was originally published on June 14, 2016.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
